DP World throughput only up 3% as market remains challenging

DP World throughput only up 3% as market remains challenging

DP World’s container volumes grew by 3.2% in like-for-like terms across its global terminal portfolio during the first nine months of 2015 as its European and UAE-based facilities cushioned the impact of tough economic headwinds.

The Dubai-based company handled 46.5m teu, up 3.7% on a reported basis, while its consolidated terminals handled 21.9m teu, a like-for-like increase of 2.5% and an overall improvement of 3.2%.

Mohammed Sharaf, DP World’s group CEO, said: “Growth rates in the third quarter have softened across the portfolio and the overall macro-economic outlook remains challenging. However, despite the economic headwinds, our portfolio has delivered a resilient nine month performance and continues to grow ahead of the market.”

Growth in the first nine months was largely driven by Europe and UAE terminals with the UAE handling 11.9m teu, representing growth of 4.0%.

The Europe, Middle East and Africa (EMEA) region saw container volume growth of 5.3% over the first three quarters of 2015 compared to 2.4% in the Americas & Australia and 2.5% in Asia Pacific and the Indian Subcontinent.

A company statement blamed its performance in the Americas on “continued weak economic conditions”.

Sultan Ahmed Bin Sulayem, chairman of DP World, said that the company was pleased “particularly given the difficult macro environment” and remained confident about the industry’s long-term outlook.

Highlighting investments to meet future capacity requirements, he stated: “Our new developments in Rotterdam, Netherlands and Nhava Sheva, India are now operational whilst Yarimca, Turkey and the second phase of terminal three (T3) Jebel Ali (UAE) are due to come online in the near future.”

“Additionally, we closed the acquisition of Fairview Terminal in Canada in August 2015,” bin Sulayem added.

According to Sharaf, the latest results are a reflection the company’s focus on “faster growing markets”. DP World remains confidents of meeting full year market expectations, he stated.